march 4 fml charts

Hi All,

A few weeks ago we had a look at FML's weekly chart highlighting the strong potential for a breakout, and what a breakout it has been. It took care of the 7.6cent target with ease and has gone on to reach targets further up the chart.

A look at the indicators demonstrates why there has been so much strength in the stock over the past month. Buying momentum (shown on the stochastics) has finally managed to breakout of that downwards trendline, and this has been a significant driver in the recent rally (particuarly this week). While the money flow looks a bit overvalued, MACD and volume are looking mightily strong.





The price has run right up to a long term trendline, and today it rejected the 61.8% fibonacci level. While this is not to say that the share price can't go higher next week, I would be a tad careful because not only have these targets been reached, the price has closed outside the bollinger bands for a third week in a row, and this is a sign that the volatility in the stock cannot be mantained. On the otherhand, some stocks can make 'exceptional' moves to the upside, and can go against the typical TA rules that the bollinger bands are on the chart for. If it were to go higher, I would have 10.3cents (10.5c) as the next technical target. Having said that, I would expect strong pyschological resistance at the 10cent mark as well.





Overall, this has been a cracking run. Traders would have had a field day, and the value of LT investments would have risen the best part of 100% over the past month. While the indicators do look particuarly bullish, price will have to wrestle with a long term trendline if it wishes to go higher next week. Keep an eye on it.

Regards, 5hareholder.